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Devon Energy (DVN) Stock Sinks As Market Gains: What You Should Know

·3 min read

Devon Energy (DVN) closed at $65.90 in the latest trading session, marking a -1.38% move from the prior day. This change lagged the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.2%.

Prior to today's trading, shares of the oil and gas exploration company had lost 2.47% over the past month. This has lagged the Oils-Energy sector's loss of 0.21% and was narrower than the S&P 500's loss of 9.94% in that time.

Wall Street will be looking for positivity from Devon Energy as it approaches its next earnings report date. The company is expected to report EPS of $2.23, up 106.48% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.9 billion, up 41.36% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.28 per share and revenue of $19.85 billion. These totals would mark changes of +162.89% and +66.52%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Devon Energy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.84% higher. Devon Energy is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Devon Energy's current valuation metrics, including its Forward P/E ratio of 7.2. This valuation marks a premium compared to its industry's average Forward P/E of 5.11.

Investors should also note that DVN has a PEG ratio of 0.13 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.21 at yesterday's closing price.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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